The annual production of these metals amounts to 400 tonnes per year, which is far lower than any of the other precious metals individually. To give an idea of their rarity further, this group is split into six PGM’s occurring together in nature alongside nickel and copper. Varying from year to year, they are extracted in approximately the following percentages: platinum 40%; palladium 50%; rhodium 5.75%, ruthenium 3.75%, iridium 0.875% and osmium 0.375%.
These are widely used as catalysts, corrosion-resistant materials, fine jewellery and in some cases, bullion bars and coins. They have stable electrical properties and also at high temperatures.
Platinum and palladium are the most important as well as abundant metals in the PGM mix. Rhodium, ruthenium, iridium and osmium are co-products of platinum and palladium mining.
How Can I Invest In PGMs?
Platinum and palladium bars and coins are readily available. Rhodium is less common but can also be sourced by Bleyer in mainly bar format.
What Are The Key Properties of PGMs?
PGMs are highly resistant to wear, tarnish, chemical attack and high temperature and have outstanding catalytic and electrical properties. All these unique characteristics have made them indispensable in many industrial applications and although mining has significant environmental impact the use of PGMs for cleaning pollutants hugely mitigates this. Once mined PGMs are also almost indefinitely recyclable.
What Are The Benefits of Using PGMs in Catalytic Converters?
An IPA LCA study 2013 concluded that from an environmental viewpoint the break-even point occurs at different point for different toxins, starting at 250km. During the life of one EURO 5 diesel or EURO 5 petrol plus vehicle, travelling over 100,000 miles over 1.3 tonnes of toxic and harmful pollutants including CO, HC, NOx and PM are avoided by the use of catalytic converter systems.
How Rare and Difficult To Extract are PGMs?
Platinum Group Metals are very rare indeed, with most PGM bearing ores being of an extremely low grade. Mined ore grades range from 2g to 6g per tonne, making mining a capital, energy and labour intensive process. Extraction concentration and refining of the metals is costly and requires quite complex processes that may take up to six months.
Where are platinum group metals mostly found?
According to a report by the International Platinum Group Metals Association, 58% of production takes place in South Africa, Russia accounts for another 26% with the rest coming from Zimbabwe, Canada and the USA.
Read our article on ‘Investing in Platinum, Options and Products‘.
What Are The Key Industrial Uses of PGMs?
- Catalytic Converters (discussed above).
- Car Safety – platinum-cured silicones are also used to coat and protect automotive air bags from their explosive systems. Thanks to the platinum treatment, these air bags remain stable and can be kept folded and packed for long durations without deteriorating. These air bags also contain an initiator sensor, consisting of a fine platinum wire, coated with explosive material that facilitates its activation on impact.
- Battery Cell Technology – platinum acts as an effective and durable catalyst in hydrogen-powered fuel cell electric vehicles (FCEVs). This low-temperature, quick-start cell runs off pure hydrogen and uses platinum and palladium at its heart, with the FCEV itself emitting only water from its tailpipe. Although this technology is not new it has not been developed commercially for widespread use, most likely for political, rather than scientific reasons. Several companies have developed hydrogen powered vehicles which could be refuelled in a few minutes were the infrastructure in place. We should consider this as an emerging and environmentally favourable technology.
- Cancer treatment- PGM It was found that PGMs have ability to slow or stop the division of living cells so chemotherapy drugs, such as cisplatin, have been developed to treat a wide range of cancers.
- Silicone – platinum cured silicone mixtures are used in many personal care and medical products including lipsticks; shampoos; contact lenses and medical elastomers. These in particular have excellent properties for wound healing as they will stick to dry skin, while not sticking to and damaging the wet wound. Silicones are also air and moisture permeable which improves the healing process.
- Keeping food fresh – PGMs are used in the production of an established and unrivalled product that helps to keep fruit fresh for longer. Named, ‘It’s Fresh’ comes in the form of a discreet high-tech palladium containing sheet which is placed in the bottom of packaging. This absorbs ethylene which is the gas emitted by produce during the ripening process and it’s removal slows this down.
- Textile production – platinum catalysts are used to make petrochemical feed stocks which are the basic raw materials used in the manufacture of plastics, synthetic rubber and polyester fibres. These fibres are used to produce materials in the production of clothes and blankets.
Bullion with Bleyer
If you have any questions at all about investing in PGMs or any other metal, now is the time to get in touch with us. We will offer you our insight and answer any questions you have so that you can make the right decisions for you and your money.